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ONGC reports first-ever quarterly loss of Rs 3,098 crore on impairment loss, revenue dips 20% –

State-owned Oil and Natural Gas Corporation (ONGC) on June 30 posted a net loss of Rs 3,098 crore for the quarter ended March 31, impacted by an impairment on the slump in oil and gas prices. The company had reported a profit of Rs 4,239.50 crore in Q4 FY19 and Rs 4,226.45 crore in Q3 FY20.

“The company has considered possible effects of COVID-19 on recoverability of cash generating units in accordance with Ind-AS. Based on the assessment, the company has recorded an impairment to the extent the carrying amount exceeds the value in use and has disclosed the same as an exceptional item – Rs 4,899 crore,” ONGC said in a BSE filing.

Revenue from operations during the quarter declined 19.8 percent year-on-year to Rs 21,456.2 crore, while the quarter-on-quarter fall was 9.5 percent.

Operating performance was partly impacted by lower revenue. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 71.7 percent sequentially to Rs 2,512 crore and margin fell 2,570 bps QoQ to 11.7 percent in Q4FY20, reports CNBC-TV18.

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Other income during the quarter stood at Rs 1,325.64 crore, which declined 44.6 percent compared to year-ago period and 5.5 percent compared to previous quarter.

In the full year FY20, standalone profit plunged 49.8 percent to Rs 13,444.54 crore and revenue fell 12.3 percent to Rs 96,213.61 crore compared to FY19.

Revenue from its offshore business declined 13 percent to Rs 63,521.82 crore during the year and onshore business dropped 10.8 percent to Rs 32,691.79 crore compared to previous year.

The stock price corrected 49.4 percent in last one year and fell 36.8 percent in first half of CY20.